Classical economists believe that:
A)monetary policy is not useful in fighting recessions.
B)discretionary fiscal policies are useful for dampening business cycle fluctuations.
C)rational expectations are held by most of the public.
D)short-run goals are more important than long-run goals.

Question

Quizplus · Accepted Answer

Classical economists generally believe that monetary policy is ineffective in fighting recessions due to price and wage flexibility, which they argue will naturally adjust to restore full employment.

Classical Economists Believe That